Why OPEC’s Oil War Will Fail

In a highly publicized meeting last month, OPEC announced it would maintain high production levels in an attempt to disrupt U.S. shale oil producers.

But according to Kent, the OPEC oil price war simply won’t work.While others are fretting about what the production move means, he’s been meeting with some of the world’s top oil policymakers in Dubai this month to analyze OPEC’s strategy.

Kent appeared on Bloomberg TV in London today (Monday) to explain why OPEC is fighting a losing battle. He also detailed what the fair market price for crude oil is right now:

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Enjoyed reading “The Great Game”. As one would expect, any holdings we have related to energy have taken a beating from 12/8 – 12/12/14. Why are alternative energy stocks which continue to announce participation in large new projects (such as Yingli Green Energy), and stocks such as of companies which provide ancillary services to oil extraction and transportation getting battered as well? Does this represent a new, below market buying opportunity for these companies’ equities? What will the near term and long term effects of lower than normal oil prices have on companies where the Chinese have invested in new shale oil fields such as Linc Energy (Australia). Now seems like a good time to buy those as well. Or, do you think the PPB for crude will continue to slide through the end of the year and so will these stocks?

Thanks for your insight Dr. Moors. I do agree with you. There is s company called Falconridge Energy Tec (FROT) that appears to have an answer to the more expensive process of fracking. It is called Terra Slicing. What do you think of this company and are they really capable of cutting the costs of fracking? Tony Baczkowski, Duquesne University Alumni

Business can take on a ugly face, particularly when players have different economic and social agendas. Efforts by Saudi Arabia can have damaging effects on the US’s efforts to maintain energy independence. All will agree that it is natural for fuel consumers to enjoy the lower prices presently existing, but if the US has advantages of greater resource levels, the ability to increase market share and to conduct business intelligently so as to maintain customer loyalty, these obstacles can be overcome. For the benefit of all mankind what the world needs now is unity of efforts.

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